Midwest 'cordial' to AirTran execs; But Milwaukee-based carrier's board decides to take no action on takeover offer, even with three new members friendly to its suitor.

AirTran Airways' top brass got a "cordial" reception when it presented its case Monday to Midwest Air Group's board of directors for acquiring the Milwaukee-based airline, an AirTran spokesman said.

AirTran Chief Executive Joe Leonard and four other top executives outlined the discount carrier's strategy for the combined airlines, said Vice President Tad Hutcheson.

"All of the board members were there. I heard it was very cordial and professional," said Hutcheson. "The board members asked a lot of thoughtful questions."

Carol Skornicka, Midwest's general counsel, said the board decided to take no action after hearing from AirTran and deliberating for about two hours.

"The board has taken no action, so it's like nothing happened," she said. "This was, in essence, what [AirTran] presented to the board from the beginning. It was a more detailed proposal, but it was not new."

AirTran, which is based in Orlando but operates its main flight hub in Atlanta, got the chance to pitch its buyout proposal after Midwest's shareholders voted to install three directors nominated by its rival on the nine-member board.

Hutcheson said the directors met with AirTran's executives for two hours in offices in downtown Milwaukee rather than at Midwest's headquarters. The board gave no indication whether it will initiate negotiations or continue to reject AirTran's offer.

Hutcheson called the discussion a "presentation, not negotiation."

AirTran has been chasing Midwest Airlines, known for its warm cookies served on each flight, since quietly floating an offer in 2005 and raising it several times since. AirTran has long wanted to open a hub in the Midwest to broaden its growth outside of Atlanta, where it faces intense competition from Delta Air Lines.

However, Midwest has resisted AirTran's overtures, arguing that AirTran's offer is too low and that it has better long-term prospects as a stand-alone airline. Midwest has substantial anti-takeover protections under Wisconsin law, but scheduled Monday's meeting after almost two-thirds of the votes cast in a Midwest shareholders meeting last month supported AirTran's slate of directors. The vote still didn't give AirTran enough votes to call the shots, but could make it easier for the airline to win over a majority of Midwest's directors to support its bid.

AirTran's bid, which values Midwest at roughly $370 million, is a combination of cash and AirTran stock currently worth about $15.22 per Midwest share.

The offer expires Aug. 10, and AirTran says it has no plans to increase it.

Midwest's shares closed Monday at $14.29, down 11 cents.

AirTran's shares were $10.64, up a penny.